PART – A
Q1. What do you understand by the term "Deficiency"?
Ans. According to Section 2(11) of the CPA, 2019, Deficiency means any fault or imperfection or inadequacy in the quality, nature, or manner of performance which is required to be maintained by or under any law for the time being in force, or has been undertaken to be performed by a person in pursuance of a contract or otherwise in relation to any service and includes: -
- Any act of negligence or omission or commission by such person which causes loss or injury to the consumer.
- Deliberate withholding of relevant information by such person to the consumer.
Q2. Define consumer.
Ans. A ‘consumer’ is an individual who consumes goods – manufactured by firms or created by nature (air, water, etc.) and services offered by government or firms – hospital, educational institutions, etc. Any individual who purchases products/services for his personal use and not for manufacturing or resale. Thus, a consumer is a user of goods and services. The 2019 Act explicitly includes e-commerce transactions, teleshopping, and direct selling in the definition of a consumer; a major addition over the 1986 version.
Q3. What is bargain price?
Ans. Bargain Price refers to a kind of unfair trade practice. Where an advertisement is published in a newspaper, whereby goods/services are offered at a bargain price, when in fact there is no intention that the same may be offered at that price for a reasonable period of time. It shall amount to an unfair trade practice.
Q4. What do you understand by the expression "consumer rights"?
Ans. Rights are the legal shields provided to you by the state to protect you from exploitation, such as the right to safety, information, and redressal.
Section 2(9) of the Consumer Protection Act, 2019, defines "consumer rights," empowering consumers with six core protections:
- Right to Safety
- Right to be Informed
- Right to Choose
- Right to be Heard
- Right to seek Redressal
- Right to Consumer Education
Q5. What do you mean by the Word Consideration?
Ans. the word consideration refers to the "something of value" that is exchanged between a consumer and a trader or service provider. It is the foundation of a legally binding consumer contract, often described as the "price" or "quid pro quo" (something for something) of the agreement. Consideration is the element that distinguishes a legal contract from a "gratuitous promise" or a gift.
Q6. What do you understand by Voluntary Consumer?
Ans. A Voluntary Consumer (often referred to as a Voluntary Consumer Organisation or Association) is an organisation formed by a group of individuals who join together of their own free will; without legal mandate or financial incentive to collectively protect and advocate for consumer rights and interests.
In short, a person who buys goods and avail services knowingly. The one who willingly purchase goods for consideration.
Q7. Explain two objects of the State Council under the Consumer Protection Act, 1986. [CPA, 2019 in present context]
Ans. The objectives of every State Council shall be to render advice on promotion and protection of consumer rights under this Act within the State. It focuses on protecting consumers against hazardous goods, unfair trade practices, and ensuring access to information and redressal mechanisms at the state level. [Section 7 (CPA, 2019)]
Q8. Define Sec. 2[e] of the Consumer Protection Act, 1986.
Ans. Section 2[e] of the CPA, 1986, defines “consumer dispute". A consumer dispute is a disagreement between a buyer and a seller/service provider, occurring when a person against whom a complaint is made denies or disputes the allegations, such as defective goods, deficient services, overcharging, or unfair trade practices. It arises when consumer rights are violated, necessitating redressal through consumer courts or arbitration. [In CPA, 2019, Section 2(8) defines consumer dispute].
Q9. Give the meaning of the maxim "Caveat Emptor".
Ans. It is a Latin maxim that means, “Let the buyer beware”. The buyer must use their own skill and judgment to ensure the product meets their needs.
Q10. Under which section the term unfair trade practices lie of Consumer Protection Act, 1986? [CPA, 2019 in present context]
Ans. Section 2(47) of the CPA, 2019.
PART – B
Q11. Explain the need of the Consumer Protection Act, 1986. [CPA, 2019 in present context]
Ans. The Consumer Protection Act (CPA), 2019, replaced the three-decade-old 1986 Act to better address the complexities of the modern digital age. While the 1986 Act laid the foundation, the 2019 version was necessary to tackle the rise of e-commerce, telemarketing, and sophisticated deceptive branding.
Need for the CPA, 2019
The "Needs" represent the market failures and vulnerabilities that necessitated government intervention. The following reasons led to need for a new legislation:
- Price Disparity - Consumers often face price gouging (excessively high prices) or arbitrary pricing for essential services where competition is low.
- Monopolies - In sectors where the public or specific private entities hold a monopoly, consumers lack the power of "choice," leading to poor service quality.
- Supply Manipulation - Creating artificial shortages (short supply) to hike prices or force consumers to buy sub-standard alternatives.
- Deceptive Marketing - Goods are often advertised with benefits or usages they do not possess.
- Quality Misrepresentation - Refurbishing second-hand goods and selling them as "brand new" is a common fraud the Act seeks to penalize.
- Incomplete Disclosure: Withholding critical information about a product (like side effects or origin) prevents "informed consent."
- Lack of Organization: Unlike businesses, consumers are scattered. The Act provides a collective voice through Class Action Suits.
- Awareness Gap: A significant portion of the population remains unaware of their rights or the technicalities of the products they consume.
Q12. Discuss reliefs available to consumers.
Ans. Under the Consumer Protection Act (CPA), 2019, consumers can seek various reliefs through Consumer Disputes Redressal Commissions at the district, state, and national levels. Key reliefs include:
- Removal of Defects – the court may order the seller to rectify any defects in the goods, or deficiencies in the services provided.
- Replacement of Goods – if the defect cannot be repaired, the consumer is entitled to a replacement of the product with a new one of similar description, free from any defects.
- Refund of Price – the consumer can claim a full refund of the price paid for the product or the charges paid for the service.
- Compensation for Loss or Injury - Consumers may be awarded monetary compensation for any loss or injury, including mental agony, suffered due to the negligence of the opposing party.
- Product Liability Action - consumers can claim compensation for harm caused by a defective product from the manufacturer, service provider, or seller.
- Discontinuation of Unfair Trade Practices - The commission can order the immediate withdrawal of hazardous goods from the market and direct the seller to cease unfair or restrictive trade practices, including misleading advertisements.
Power of Central Authority to recall goods, etc. (Section 20):
Where the Central Authority is satisfied on the basis of investigation that there is sufficient evidence to show violation of consumer rights or UTP by a person, it may pass such order as may be necessary, including:
- Recalling of goods or withdrawal of services, which are dangerous or unsafe.
- Reimbursement of prices of goods or services.
- Discontinuation of practices which are unfair and pre-judicial to consumers’ interest.
Provided that the Central Authority shall give the person an opportunity of being heard before passing an order under this section.
Q13. Which types of legislative measures have been adopted by the Govt. for the protection of consumers?
Ans. The Government has enacted several laws to protect consumers from exploitation, unfair trade practices, and substandard goods. The key legislative measures are:
- Consumer Protection Act, 2019: This is the primary legislation. It provides a three-tier grievance redressal mechanism (District, State, and National Commissions) and established the Central Consumer Protection Authority (CCPA) to prevent unfair trade practices and misleading advertisements.
- Legal Metrology Act, 2009: This act ensures that all goods are sold by accurate weight, measure, or number. It mandates that packages must contain declarations like MRP, net weight, and expiry dates to prevent consumers from being cheated.
- Bureau of Indian Standards (BIS) Act, 2016: This law establishes quality standards for goods. It introduced the "ISI mark" and Hallmarking, ensuring that consumers receive products that are safe and meet specific technical specifications.
- Essential Commodities Act, 1955: This act allows the government to control the production, supply, and distribution of essential items (like food and medicines). It prevents hoarding and black marketing, ensuring these goods remain available at fair prices.
Q14. What is the utility of consumerism?
Ans. Consumerism is the socio-economic ideology that encourages the acquisition of goods and services in ever-increasing amounts. It suggests that a person's standard of living, and their happiness, is directly proportional to their consumption.
The concept of Consumerism in India is a fascinating double-edged sword. While it fuels one of the world's fastest-growing economies, it also creates a complex web of social and environmental challenges. In the context of the Law of Torts and the Consumer Protection Act (CPA), 2019, consumerism isn't just about buying; it’s about the shift of power from the seller (Caveat Emptor - Let the buyer beware) to the consumer (Caveat Venditor - Let the seller beware).
Need and reasons for the development of consumerism in India:
India presents a unique challenge for consumer protection. Unlike smaller, more homogenous nations, India’s market is vast and fragmented.
- Protection Against Market Malpractices - The primary driver for consumerism was the need to shield individuals from unfair trade practices. Before the movement gained momentum, consumers frequently faced adulteration, particularly in food grains and oils; black marketing, artificial scarcity created to hike prices; and substandard goods, Selling poor quality products at premium rates.
- Information Asymmetry - Modern markets are complex. Consumers often lack the technical knowledge to evaluate sophisticated electronic goods, pharmaceuticals, or financial services. Consumerism developed to bridge this gap, ensuring that the "Right to be Informed" is upheld through mandatory labelling and honest advertising.
- Shift from 'Caveat Emptor' to 'Caveat Venditor' - For decades, the prevailing logic was Caveat Emptor (Let the buyer beware). As the economy liberalized in the 1990s, this shifted toward Caveat Venditor (Let the seller beware). Consumerism grew to ensure that businesses take responsibility for the safety and performance of their products.
- Impact of Globalisation and Competition - The entry of multinational corporations (MNCs) increased the variety of goods available. This heightened competition meant that consumers needed a way to compare quality, and organized bodies were required to handle grievances against large, powerful corporations.
- Legal Empowerment (The CPA 1986 & 2019) - The institutionalization of the Consumer Protection Act provided a formal framework for consumerism. It helped by establishing District, State, and National Commissions for speedy redressal, and Consumer Awareness; government-led campaigns that educated the public on their rights.
Consumerism in India is a response to the imbalance of power between organized producers and unorganized consumers. It seeks to ensure that "The Consumer is King" is a reality rather than just a marketing slogan.
PART – C
Q15. Explain the constitution and procedure of Central Consumer Protection Council.
Ans. Constitution and procedure of CCPC under CPA, 2019:
Section 3(1): requires the central government to establish by notification a Central Consumer Protection Council (CCPC) for the purpose of the act. The central government has made the consumer protection council rules, 2020, which came into force on 20 July, 2020. The rules provide for the establishment and constitution of the central council.
Composition of the Central Council:
Section 3(2) of the act provides that the central council shall be an advisory council and consist of the following members namely: -
- The minister in-charge of the department of consumer affairs in the central government; who shall be the chairperson of the central council.
- The minister of state in-charge of the consumer affairs in the central government; who shall be the vice-chairperson.
- The minister in-charge of the consumer affairs of two of the states from each region as mentioned in Schedule 1, to be changed by rotation on expiration of the term of the council.
- An administrator of a Union Territory to represent that UT, as mentioned in Schedule 2, to be changed by rotation on expiration of the term of the council.
- Two members of parliament, one from the Lok Sabha and one from the Rajya Sabha.
- Representatives of departments of the central government, autonomous organisations, or regulator, concerned with the consumer interest – not exceeding 5, to be nominated by the central government.
- The chief commissioner of the CCPA.
- The Registrar, National Consumer Dispute Redressal Commission, New Delhi.
- Representatives of active consumer organisations - not exceeding 5, to be nominated by the central government.
- Representatives with proven expertise and experience, who are capable of representing consumer interest. One from each of 5 regions; at least one woman.
- The secretaries in-charge of the consumer affairs in the state to be nominated by the central government – not exceeding 3.
- The secretary in-charge of the consumer affairs in the central government, shall be the member secretary in the central council.
Term of CCPC:
The term of CCPC shall be of 3 years. The council shall continue to function for the period further of 3 months or till it is reconstituted, whichever is earlier.
Number of meetings:
Section 4(1) of the CPA, 2019, makes it obligatory that the council must hold at least one meeting in a year. This is a minimum requirement, but the council is entitled to hold as many meetings as it deems necessary.
Objective of the CCPC:
The objective of the central council is to render advice on promotion and protection of the consumers’ rights which have been listed in the clause 9 of Section 2, of CPA 2019. The role of the central council is primarily advisory with regards to promotion and protection of consumers’ rights and interests.
Procedure for the meeting of Central Council:
- The first essential requirement of a valid meeting is that it should be called by a proper authority; a meeting of the central council with the approval of the chairperson.
- Notice – a proper notice of the meeting must be given to all the members of the central council. The notice should be in writing and must be given at least 15 days prior to the date of the meeting. Every notice of the meting shall specify the place, and the day and the hours of the meeting, and shall contain the items of agenda for the meeting.
- Place of Meeting – the meeting of the council shall ordinarily be held in the NCT of Delhi. However, the council may also hold its meeting at any other place in India, wherever in the opinion and discretion of the chairperson.
- Presiding Office – the meeting of the central council shall be presided by the chairperson of the council. In the absence of the chairperson, the vice-chairperson shall preside over the meeting. In the absence of both of them, the central council shall elect a member to preside over the meeting of the council.
- Defect in the constitution of the council – the proceeding of the CCPC shall not be invalid merely by a reason of existence of any vacancy in or any defect in the constitution of the council.
Q16. Discuss the jurisdiction of National Commission under the Consumer Protection Act, 1986. [CPA, 2019 in present context]
Ans. National Commission as under CPA, 2019:
Establishment (Section 53):
The central government should by notification, establish a National Consumer Dispute Redressal Commission, to be known as the National Commission.
The National Commission shall ordinarily function at the National Capital Region and perform its functions at such other places as the central government may in consultation with the National Commission, at such places it deems fit.
Composition (Section 54):
The National Commission shall consist of: -
- A president.
- Members not less than 4 and not more than such number as may be prescribed.
Qualification and Appointment of the President of National Commission [Section 55(1)]:
A person shall be qualified for appointment as President of the National Commission, if he: -
- Is, or has been a judge the Supreme Court; or
- Is, or has been, Chief Justice of High Court.
The President of the National Commission shall be appointed by the Central Government on the recommendation of a search-cum-selection committee, consisting of the following:
- Chief Justice of India / any judge of the Supreme Court nominated by him. (Chairperson).
- The outgoing President of the National Commission. (Member).
- Secretary to the Government of India, Minister of consumer affairs, food and public distribution. (Member).
- Secretary to the Government of India, Ministry of Commerce (Department of Promotion of Industry and Internal Trade) – Member.
Qualification and Appointment of the Members:
A person shall not be qualified for appointment as a member, unless he: -
- Is or has been a judge of High Court; or
- Has, for a combined period of 10 years, been a DJ/ADJ; or
- Is a person of ability, integrity, and standing and having special knowledge of, and professional experience of not less than 25 years, in economics, business, commerce, law, finance, accountancy, etc. which is useful to the National Commission.
Term of Office [Section 55(2)]:
President – for a term of 4 years or 70 years of age, whichever is earlier.
Members – 4 years or 67 years of age, whichever is earlier.
Jurisdiction [Section 58(1)]:
The NCDRC exercises three main types of jurisdiction:
- Territorial Jurisdiction – The territorial jurisdiction of the National Commission is of whole India.
- Appellate Jurisdiction – The National Commission has jurisdiction to entertain appeals against the order of any State Commission. The appeal may be made within 30 days from the date of the order of the State Commission. However, the National Commission may entertain an appeal filed after the expiry of 30 days, if it is satisfied that there was sufficient cause for not filing an appeal within 30 days.
- Pecuniary Jurisdiction –
According to,
CPA, 2019: above 10cr.
CPA, 1986: above 1cr.
Revised Rules, 2021 – above 2cr.
Appointing Authority:
The President is appointed by the Central Government after consultation with the Chief Justice of India.
The appointment of other members of the National Commission is made by the Central Government on the recommendation of the selection committee, consisting of the following: -
- A person who is a judge of the Supreme Court, to be nominated by the CJI. (Chairman).
- The secretary in department of legal affairs in the Government of India, (Member).
- The secretary of department dealing with consumer office in the Government of India.
Powers of Consumer Forum (exercised by all commissions)
All commissions have the powers of a Civil Court under the Code of Civil Procedure (CPC), 1908, regarding:
- Summoning and enforcing the attendance of any defendant/witness and examining the witness on oath.
- Discovery and production of any document or material object as evidence.
- Receiving evidence on affidavit.
- Any other matter which may be prescribed.
- Obtaining information required for the purpose of the proceeding from any person.
- Enter and search any premises.
Appeal to Supreme Court (Section 67)
Any person aggrieved by an order of the National Commission in its original jurisdiction may prefer an appeal to the Supreme Court of India within 30 days.
Q17. Discuss in detail the objectives of Consumer Protection Act, 1986. [CPA, 2019 in present context]
Ans. The Consumer Protection Act (CPA), 2019, replaced the three-decade-old 1986 Act to better address the complexities of the modern digital age. While the 1986 Act laid the foundation, the 2019 version was necessary to tackle the rise of e-commerce, telemarketing, and sophisticated deceptive branding.
Objectives of CPA, 2019
The primary goal of the CPA is to shift the market philosophy from Caveat Emptor (Let the buyer beware) to Caveat Venditor (Let the seller beware).
A. Comprehensive Protection of Rights
The Act is designed to protect the six fundamental consumer rights:
- Right to Safety against hazardous goods.
- Right to be Informed about quality, quantity, and price.
- Right to Choose from a variety of goods at competitive prices.
- Right to be Heard in appropriate forums.
- Right to Seek Redressal against unfair trade practices.
- Right to Consumer Education.
B. Effective and Speedy Redressal
The Act establishes a three-tier quasi-judicial mechanism (District, State, and National Commissions). By ensuring these forums are headed by individuals with judicial experience, the Act ensures that decisions are legally sound.
C. Market Regulation and Monitoring
The Act acts as a deterrent against the "future market" manipulation of essential commodities. The act also monitors the quality of products in the market. By promoting certification schemes (like ISI or AGMARK), the Act ensures that the production of goods meets national safety and quality benchmarks.
Need for the CPA, 2019
The "Needs" represent the market failures and vulnerabilities that necessitated government intervention. The following reasons led to need for a new legislation:
- Price Disparity - Consumers often face price gouging (excessively high prices) or arbitrary pricing for essential services where competition is low.
- Monopolies - In sectors where the public or specific private entities hold a monopoly, consumers lack the power of "choice," leading to poor service quality.
- Supply Manipulation - Creating artificial shortages (short supply) to hike prices or force consumers to buy sub-standard alternatives.
- Deceptive Marketing - Goods are often advertised with benefits or usages they do not possess.
- Quality Misrepresentation - Refurbishing second-hand goods and selling them as "brand new" is a common fraud the Act seeks to penalize.
- Incomplete Disclosure: Withholding critical information about a product (like side effects or origin) prevents "informed consent."
- Lack of Organization: Unlike businesses, consumers are scattered. The Act provides a collective voice through Class Action Suits.
- Awareness Gap: A significant portion of the population remains unaware of their rights or the technicalities of the products they consume.
Necessities for CPA, 2019
The 2019 Act wasn't just an update; it was a structural overhaul. Here is how it addresses modern necessities:
|
Necessity |
Description and Impact |
|
Digital Accountability |
It brings e-commerce and direct selling under its ambit. It mandates that online platforms provide details on returns, refunds, and sellers' information. |
|
Regulating Influencers |
Misleading ads are now the responsibility of not just the company, but also the endorsers (celebrities/influencers) and publishers. |
|
Central Authority (CCPA) |
The creation of the Central Consumer Protection Authority acts as a "watchdog" that can initiate suo-moto action, recall unsafe goods, and cancel licenses. |
|
Product Liability |
A manufacturer or service provider is now liable to compensate for any harm caused by a defective product or deficient service. |
|
Ease of Grievance |
Necessity of "E-filing" allows consumers to file complaints from their place of residence rather than where the transaction occurred. |
Difference between CPA, 1986 and CPA, 2019
|
Provision |
CPA, 1986 |
CPA, 2019 |
|
Regulator |
No separate regulator. |
Central Consumer Protection Authority (CCPA) to be formed. |
|
Consumer Court |
Complaint could be filed in consumer court where the sellers’ office is located. |
Complaint can be filed in a consumer court where the complainant resides/works. |
|
Product Liability |
No provision. Consumer could approach a civil court not consumer court. |
Consumer can seek compensation for harm caused by a product or service. |
|
Pecuniary Jurisdiction |
District Commission – Up to 20 lakh State Commission – Up to 1 crore National Commission – Above 1 crore
|
District Commission – Up to 1 crore State Commission – Up to 10 crore National Commission – Above 10 crore |
|
E – Commerce |
No provision regarding E-Commerce. |
All rules of direct selling extended to E-Commerce. |
|
Mediation Cell |
No legal provision. |
Courts can refer settlements through mediation cell. |
Note: - As per revised rules of 2021, Pecuniary Jurisdiction is as follows:
- District Commission – Up to Rs.50 Lakh
- State Commission – Rs.50 Lakh to Rs.2 Crore
- National Commission – Above Rs.2 Crore
Q18. Explain the term unfair trade practice with appropriate case laws.
Ans. The term ‘Unfair Trade Practices’ is defined under Section 2(47) of the CPA, 2019.
It refers to the use of various deceptive, fraudulent, or unethical methods to obtain business. Unfair business practices include misrepresentation, false advertising, tied/tie-in selling, deceptive pricing and non-compliance with manufacturing standards. Such acts are considered unlawful by statute through the consumer protection laws.
Unfair Trade Practices may be categorised under:
- False representation
- Bargain price
- Non-compliance of prescribed standard
- Falsification of trademark
- Unsafe and hazardous goods
- False Representation:
The practice of making any written statement or representation which –
- Falsely suggest that goods are of a particular standard, quality, quantity, grade, composition and model.
- Falsely suggest any rebuilt, second-hand, renovated, re-conditioned, or old goods as new.
- Represents that the goods or services have sponsorship, approval, or affiliation which such goods or services do not have.
- Makes a false or misleading representation concerning the need for or usefulness of any goods or services.
- Gives to the public any warranty or guarantee of the performance, efficiency, or length of time of a product that is not based on an adequate or proper test.
- Bargain Price:
Where an advertisement is published in a newspaper, whereby goods/services are offered at a bargain price, when in fact there is no intention that the same may be offered at that price for a reasonable period of time. It shall amount to an unfair trade practice.
- Non-compliance of prescribed standard:
Any sale/supply of goods used by the consumer, having reason to believe that goods do not comply with the standard prescribed by some competent authority in relation to their performance, composition, content, design, packaging, as are necessary to prevent the risk of injury to the person using such goods shall amount to an unfair trade practice.
- Falsification of Trademark:
Falsely applying of a trademark is said: -
- When a person deceptively applies the falsified trademark to goods/services or any packet which contains goods.
- When a person uses that package which has a false trademark or deceptively similar trademark of the proprietor for the purpose of packaging or wrapping of goods other than the real goods of the trademark.
- Unsafe and Hazardous Product:
The term hazardous goods have not been defined in the act. The dictionary meaning of the term is dangerous or risky. However, the term is used in context of goods only. A person can make a complaint of he is not informed about the hazardous nature of the goods, but the same is not true in case of hazardous services. The rationale behind the provision is to ensure physical safety of the consumer. The law seeks to ensure that those responsible for bringing goods to the market, in particular supplier, importer, or retailer and the same should ensure that while in care, these goods are not rendered unsafe through improper handling or care.
Relevant Case Laws:
1. Maruti Suzuki India Ltd. v. Rajiv Kumar Loomba (2009)
This is a landmark consumer protection case involving "unfair trade practices" under the Consumer Protection Act, 1986. It addresses whether a manufacturer can charge a consumer for equipment not provided under the guise of a "uniform pricing policy."
Facts of the Case:
The respondent (Loomba) purchased a Maruti car in Chandigarh. At the time, federal regulations required cars sold in the four major metros (Delhi, Mumbai, Kolkata, Chennai) to be fitted with catalytic converters to meet emission norms. This was not required in Chandigarh. The appellant (Maruti) charged the respondent the same price as metro customers, effectively charging an extra ₹7,000 for a catalytic converter that was not installed in his car. The District, State, and National Consumer Forums ruled in favour of the consumer, leading Maruti to appeal to the Supreme Court.
Ratio Decidendi (Reasoning of the Court):
The Court held that while forums usually don't interfere in price setting, they have full authority to intervene when a consumer is billed for a specific item not supplied. Charging for a feature not included in the vehicle is inherently deceptive and falls squarely under "unfair trade practices." Even if a uniform pricing policy existed, applying it in a way that forces a customer to pay for "nothing" is arbitrary and violates the principle of equity under Article 14.
Decision:
The Supreme Court dismissed the appeal. It upheld the lower consumer court's order directing Maruti Suzuki to refund the excess amount (₹7,000) to the consumer along with interest and costs. The Court clarified that manufacturers cannot use "policy" as a shield to justify charging for unrendered services or unsupplied goods.
2. Pepsi Co. Inc. v. Hindustan Coca Cola Ltd. (2003)
This case concerns the legality of comparative advertising and the thin line between "puffing" (extolling one’s own goods) and "disparagement" (denigrating a competitor's goods). It arose from a series of commercials released by Coca-Cola that allegedly mocked Pepsi’s brand.
Key Issues Involved: Trademark infringement (using "Pappi" for Pepsi), Copyright infringement (copying the Roller Coaster commercial/theme), and disparagement of Pepsi's product as inferior.
The court found that Coca-Cola’s commercial was a "literal imitation" of Pepsi’s original Roller Coaster commercial, including similar character dress and setting. The appeal was partly accepted. The court restrained Coca-Cola from airing the specific commercials that mimicked Pepsi’s theme and infringed on their copyright. The ruling established that comparative ads cannot be used to copy a competitor's original creative expression, upholding that "the entire theme of the advertisement and the sequence of events" cannot be stolen.
3. CCPA v. Rapido (Roppen Transportation Services Private Limited) (2025) [Misleading Advertisement]
Context: The Central Consumer Protection Authority (CCPA) investigated advertisements for "Guaranteed Auto" and "Auto in 5 min or get ₹50". The "₹50" was actually "Rapido Coins" (valid only for bike rides, expiring in 7 days), not cash, and the T&C disclaimer was in unreadable font.
Verdict: The CCPA imposed a ₹10 lakh penalty, finding that the company overstated its service capability while concealing qualifying conditions, which misled consumers into using the platform. The authority also directed the platform to ensure that any consumer who availed the offer of “auto in five minutes or get ₹50”, and did not receive the promised ₹50, shall get the amount in full without any further delay or condition.
4. Irshad Rashid Dand vs. Physics Wallah Private Limited & Anr. (2026) [Non-refund of Fees]
The complainant paid ₹35,000 for a NEET coaching course, but Physics Wallah failed to provide access to the classes. The commission deemed the retention of fees without providing services as an "unfair trade practice" and a "deficiency in service".
The court ordered a refund of the ₹35,000 fee, plus ₹50,000 as compensation for academic loss/mental agony and ₹10,000 for litigation costs (totalling ₹95,000). The ruling serves as a notable precedent in 2026 regarding the accountability of ed-tech platforms under consumer protection laws.